Equitorial Exploration Corp. (EXX:CA) (the "Company"), is pleased to announce the signing of a Participation and Joint Venture Agreement (the "Joint Venture Agreement") with Cardiff Energy Corp. ("Cardiff") to fund the completion of Clayton #1H well and to help expedite the development of its Runnels County oil and gas leases in Texas.
Under the terms of the Joint Venture Agreement, the Company will purchase a 15% working interest ("WI") in Clayton #1H from Cardiff for USD$270,000 and will have the opportunity to fund and purchase a 25% WI on all future wells drilled on Cardiff's leases in Runnels County. The Joint Venture Agreement is subject to TSX Venture Exchange ("Exchange") approval.
Cardiff is an emerging junior oil and gas company engaged in the acquisition, exploration, development, and production of oil and gas properties. Cardiff is listed on the Exchange under the symbol "CRS". For additional details please visit Cardiff's website at www.cardiffenergy.com. To learn more about the drilling of the Clayton #1H horizontal well please visit: http://www.cardiffenergy.com/i/pdf/Runnels-County-Texas.pdf.
The Company also wishes to announce that it plans to conduct, subject to a regulatory approval, a non-brokered private placement (the "Private Placement") of units of the Company (each a "Unit") at a price of $0.06 per Unit to raise gross proceeds of up to $540,000. Each Unit will consist of one common share of the Company and one transferable share purchase warrant (a "Warrant"). Each Warrant shall be exercisable to acquire one additional common share of the Company for a period of two years at a price of $0.10 per common share. The Private Placement is subject to Exchange approval. All securities issued under the Private Placement will be subject to a four-month hold period from the date of issuance.
The Company may pay a finder's fee in accordance with the Exchange policies and applicable securities legislation. The proceeds of the Private Placement will be used by the Company to acquire the 15% WI in the Clayton #1H pursuant to the Joint Venture Agreement and for general working capital.
The Company also announces that Patrick Power has resigned as a Director and Chief Executive Officer of the Company. Mr. Power has been a member of the Company's board of directors and the Chief Executive Officer since 2013. The Company's Board would like to thank Mr. Power for his contributions to the development of the Company during his appointment as Chief Executive Officer and member of the Board.
On behalf of the Board of Directors
EQUITORIAL EXPLORATION CORP.
Dean Pekeski, President and Director
For further information, please contact either Dean Pekeski at 604-689-1799.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TS
Exchange) accepts responsibility for the adequacy or accuracy of this release.
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